blue-chip shares – акции с высокими котировками awkward – неудобный, странный,
nosedive − пикировать Syn: dive , swoop , резко падать, снижаться , пике, пикирование - fall into a nosedive - резкое падение, спад volatility − изменчивость, непостоянство (напр. в характере потребительского спроса)
iquidity , ликвидность (состояние рынка, характеризующееся высокой активностью).
barrage – заграждение unsettling – тревожный
outfit − снаряжать, экипировать; снабжать, поставлять zip - ; ничто, нуль
fickleness − непостоянство, изменчивость, переменчивость Syn: inconstancy
undermine − делать подкоп, подкапывать, минировать; взрывать, подрывать Syn: mine, подрывать, расшатывать
feedback loop – контур обратной связи stock – биржа
threshold – порог
assess − оценивать, давать оценку precipitous − крутой; обрывистый; отвесный securities − ценные бумаги
spread − спред, спрэд, маржа (разница между ценами покупки и продажи )
turmoil − шум, суматоха; беспорядок
swing − колебание, резкое колебание, неожиданное скачкообразное движение
amid − между, посреди, среди
derivative − производный (о финансовом инструменте, цена которого зависит от цены базового товара, валюты или другого финансового инструмента)
diversion − отвлечение, отклонение, переключение circuit-breaker − автоматический выключатель
bid − предложение цены (обычно на аукционе) ; заявка (на торгах)
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Give the definition of the following:
flash crash, high-frequency trading firms, blue-chip shares, short-lived, nosedive, volatility, liquidity, a feedback loop, “hot potato”, marketmakers.
You and your partner are going to gamble on a stock. What words would you need to use? Choose them from the text.
Give a written translation of the paragraph “The lessons are complex”
Render the text using as many financial terms as possible
Supplementary Reading
Stock exchange
From Wikipedia, the free encyclopedia
A stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.
To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only.
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The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks.
There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities.
The first stock exchanges
In 12th century France the courtiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers.
Some stories suggest that the origins of the term "bourse" came from the Latin bursa meaning a bag because, in 13th century Bruges the sign of a purse (or perhaps three purses), was hung on the front of the house where merchants met.
The story may well be apocryphal, however it is possible that in the late 13th century commodity traders in Bruges gathered inside the house of the Van der Burse family (for some a Venetian family with original name "Della Borsa" and used three leather bags as coat-of-arms), and in 1309 they institutionalized this until now informal meeting and became the "Bruges Bourse." The idea spread quickly around Flanders and neighboring counties and "Bourses" soon opened in Ghent and Amsterdam.
In the middle of the 13th century, Venetian bankers began to trade in government securities. In 1351, the Venetian Government outlawed spreading rumors intended to lower the price of government funds.
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There were people in Pisa, Verona, Genoa and Florence who also began trading in government securities during the 14th century. This was only possible because these were independent city states ruled by a council of influential citizens, not by a duke.
The Dutch later started joint-stock companies, which let shareholders invest in business ventures and get a share of their profits—or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam stock exchange. It was the first company to issue stocks and bonds. In 1688, the trading of stocks began on a stock exchange in London.
On May 17, 1792, in order to more easily trade cotton, twenty-four supply brokers signed the Buttonwood Agreement outside 68 Wall Street in New York underneath a buttonwood tree. On March 8, 1817, properties got renamed to New York Stock & Exchange Board. In the 19th century, exchanges (generally famous as futures exchange) got substantiated to trade futures contracts and then choices contracts.
There are now a large number of stock exchanges in the world.
The role of stock exchanges: Stock exchanges have multiple roles in the economy. This may include the following:
Raising capital for businesses
The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public.
Mobilizing savings for investment
When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry resulting in stronger economic growth and higher productivity levels of firms.
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Facilitating company growth
Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market shares, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion.
Profit sharing
Both casual and professional stock investors through dividends and stock price increases that may result in capital gains, will share in the wealth of profitable businesses.
However, when poor financial, ethical or managerial records are known by the stock investors the stock and the company tend to lose value. In the stock exchanges, shareholders of under performing firms are often penalized by significant share price decline, and they tend as well to dismiss incompetent management teams.
Creating investment opportunities for small investors
As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.
Government capital-raising for development projects
Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or oth-
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